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Problem 1:
i) To what extent can a country actually rely on the principle of Comparative advantage before engaging in international trade?
ii) Explain the different types of barriers that exist to trade.
iii) Why should a country protect its domestic firms?
Problem 2:
i) Why should the government intervene in the production of merit and demerit goods?
ii) What would you consider as the main failures of a market economy? How are such failures normally dealt with?
iii) Given that government intervention is not always beneficial, comment on its potential limitations.
define cost its types with curves
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You are a commuter student at a local university. Because of the steep rise in gasoline prices, your parents decide to give you enough additional weekly cash so that you can affor
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Continuity and Regularity: We should make it a point that once we have entered the market for a particular commodity and have gained some foothold in it, we must strive to ma
Change in the population of consumers: Population changes may affect the demand for a commodity.Areas of high population may demand more of certain commodities than areas of low
What is Expenditure Function? The Expenditure Function: When preferences satisfy the local nonsatiation assumption, in that case v(p, m) will be strictly increasing into m.
economic problems are faced by all types of economies but they are dealt with differently in different types of economies.discuss
why does gap between the ATC curve and the AVC curve decreases as the level of output increases
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